The inverted U relationship between industrial intelligence and green innovation efficiency: evidence from China

Whether industrial intelligence helps to enhance green innovation efficiency has important implications for environmental governance. Based on panel data from 30 Chinese provinces from 2006 to 2019, we employ the SBM model with undesirable outputs and a two-way fixed effects model to examine the impact of industrial intelligence on green innovation efficiency. The research mainly finds that: (1) An inverted U relationship exists between industrial intelligence and green innovation efficiency. (2) Energy efficiency is mediating in this inverted U relationship. (3) The relationship between industrial intelligence and green innovation efficiency is affected by several regional factors, such as geographic location, innovation capacity, and environmental regulation. Specifically, the inverted U relationship flattens out in the eastern region, as well as in regions with high environmental regulation and innovation capacity. This paper provides practical insights and suggests that policymakers seeking to enhance green innovation efficiency should apply industrial intelligence in moderation.